Economics 119: Psychology and Economics

Economics 119: Psychology and Economics (Fall 2013, UC Berkeley). Instructor: Professor Daniel J. Acland. This course presents psychological and experimental economics research demonstrating departures from perfect rationality, self-interest, and other classical assumptions of economics and explores ways that these departures can be mathematically modeled and incorporated into mainstream positive and normative economics. The course will focus on the behavioral evidence itself, especially on specific formal assumptions that capture the findings in a way that can be incorporated into economics. The implications of these new assumptions for theoretical and empirical economics will be explored.


Lecture 01 - Introduction
Lecture 02 - Hicksian Utility Theory and the Endowment Effect
Lecture 03 - Reference Dependent Preferences
Lecture 04 - Normative Implications of Reference Dependence
Lecture 05 - Reference Dependence in Consumer and Labor Markets
Lecture 06 - Reference Point Determination
Lecture 07 - Applications of Reference Dependence
Lecture 08 - Exponential Discounting Theory and Anomalies
Lecture 09 - Present-Biased Preferences and Quasi-Hyperbolic Discounting
Lecture 10 - Beliefs about Future Intertemporal Preferences
Lecture 11 - Self-Control and Commitment Devices
Lecture 12 - Misprediction of Future Preferences
Lecture 13 - Applications, Policy Implications, Normative Implications
Lecture 14 - State-Dependent Preferences and Projection Bias
Lecture 15 - Applications of Projection Bias
Lecture 16 - Behavioral Economics and Public Policy I
Lecture 17 - Behavioral Economics and Public Policy II
Lecture 18 - Behavioral Economics and Public Policy III
Lecture 19 - Behavioral Economics and Public Policy IV
Lecture 20 - Introduction to Probability Inference
Lecture 21 - Quasi-Bayesian Modeling - Base-Rate Neglect
Lecture 22
Lecture 23 - Heuristics and Biases
Lecture 24 - Why Behavioral Economics Matters